a
Introduction: SEC requires separate reporting of segments based on specific criteria, the process of determining separately reportable operating segments, for which separate supplemental disclosures is required, the process of segment reporting uses the management’s specification of these operating segments, designed by the management to evaluate these segments separately for to ascertain the financial position of the enterprise.
The reportable operating segment for B using all required tests in given segments.
b
Introduction: SEC requires separate reporting of segments based on specific criteria, the process of determining separately reportable operating segments, for which separate supplemental disclosures is required, the process of segment reporting uses the management’s specification of these operating segments, designed by the management to evaluate these segments separately for to ascertain the financial position of the enterprise.
The way a substantial portion of B’s operations are explained by its segment information using calculations in requirement “a”
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Advanced Financial Accounting
- Statement 1: A research and development function could qualify as an operating segment Statement 2: When applying the 75% revenue sufficiency test, the next largest operating segment shall always be selected. Statement 3: Segment data may be aggregated if majority of the aggregation criteria are met. Statement 4: Entity-wide disclosures are required by publicly held companies with more than one reportable segment. a. Only statement 1 is true b. Only statement 3 is untrue c. Only statement 4 is true d. All statements are untrue e. Only statement 2 is untruearrow_forwardObtain the most recent annual reports for the company BP plc and British American Tobacco p.l.c . Examine the segmental disclosures provided in the segment notes of the annual reports of the two companies and comment on the following: i. Based on extracts from the segment notes, · how much and what segmental information is provided in the segment notes? · discuss whether the companies are in compliance with the relevant accounting standard, and · discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions. iii. Discuss the implications of your analysis and findings, such as policy implications.arrow_forwardanswer for question A Segment disclosures are widely regarded as some of the most useful disclosures in financial reports because of the extent to which they disaggregate financial information into meaningful and often revealing groups. A) Discuss the objectives of segmental information and the requirements for the disclosure of segmental information in annual reports.arrow_forward
- How much revenues from major customers will MILKTEA disclose as part of its entity-wide disclosures on its notes to financial statements for the year ended December 31, 2021 in accordance with IFRS 8, Operating Segments?arrow_forwardWhich of the following types of quantitative information are required to be disclosed in Form 10-K for each reportable segment? Select one: a. Profit or loss amounts b. Total assets amounts c. The amount of revenue from a single customer representing 10% or more of any reportable segment's total revenue. d. A and B e. B and C f. A and C g. A, B, and Carrow_forwardNotes 11. Which of the following is not a purpose of the notes? a. to present information about the basis of preparation of the financial statements and the specific accounting policies b. to disclose the information required by PFRSS that is not presented elsewhere in the financial statements c. to provide information that is not presented elsewhere in the financial statements but is relevant to au understanding of any of the financial statements. d. to rectify inappropriate accounting policies.arrow_forward
- The following is a potential activity undertaken by management during the preparation of financial statements. - "Assessment of the 12 months projected information of the entity" Which assumption/consideration for a fair presentation of the financial statements matches the activity? Select the correct answer. Consistency Offsetting Going concern Accrual basisarrow_forwardMultiple choice 1. ABC Co. completes the draft of its December 31, 20x1 year-end financial statements on January 31, 20x2. On March 1, 20x2. the management of ABC Co. authorizes the financial statements for issue its supervisory board. The supervisory board is made up solely of non-executives and includes representatives of employees and other outside interests. The supervisory board approves the financial statements on March 10, 20x2. The financial statements are made available to shareholders and others on March 14, 20x2. The shareholders approve the financial statements at their annual meeting on March 23, 20x2 and the financial statements are then filed with a regulatory body on April 1, 20x2. For purposes of PAS 10, what is the date of authorization of the financial statements? a. March 1, 20x2 b. March 10, 20x2 c. March 14, 20x2 d. March 23, 20x2 2. According to PAS 10, these are events that provide evidence of conditions that existed at the end of the reporting period. a.…arrow_forwardQuestion 1 Segment disclosures are widely regarded as some of the most useful disclosures in financial reports because of the extent to which they disaggregate financial information into meaningful and often revealing groups. Discuss the objectives of segmental information and the requirements for the disclosure of segmental information in annual reports.arrow_forward
- Client Name: The Boeing Company Entity and Environment Category: Objectives, Strategies, and Business Risks Year ended: Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit Does the entity set entitywide objectives and are they supported by strategic plans? Does the entity have clear objectives in terms of a budget, profit, and other financial and operating goals? Does the entity have an entity risk assessment process that includes estimating the significance of the risks, assessing the likelihood of their occurring, and determining the actions needed to respond to the risks?arrow_forward30. Below Auditors’ Report for Al-Hashaar Company : Independent Auditor’s Report To the Audit Committee of Al-Hashaar Company We have audited the accompanying consolidated balance sheets of Al-Hashaar Company and its subsidiaries, as of December 31, 2020 and 2019, and the related consolidated statements of income, retained earnings, and cash flows for the years then ended. Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the Sultanate of Oman; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audit.…arrow_forward30. Below Auditors’ Report for Al-Hashaar Company : Independent Auditor’s Report To the Audit Committee of Al-Hashaar Company We have audited the accompanying consolidated balance sheets of Al-Hashaar Company and its subsidiaries, as of December 31, 2020 and 2019, and the related consolidated statements of income, retained earnings, and cash flows for the years then ended. Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the Sultanate of Oman; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audit.…arrow_forward
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